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Sunday, December 21, 2014

SPX Support, Resistance (S/R), Moving Averages and Other Important Levels for Trading the Week of 12/22/14

SPX (S&P 500) support,
resistance (S/R), moving averages and other important levels are provided for
trading the week of 12/22/14.Levels shown in bold are strong resistance
and support. Bold and underlined levels are very strong and important S/R.
TheSPX all-time intraday high is 2079.47
on 12/5/14 and the SPX all-time
closing high is 2075.37 on 12/5/14. The bulls move the SPX into the
all-time high range last week but could not create a new all-time intraday high
and could not create a new all-time closing high only a whisker away.

For Monday with the SPX starting at 2071, the bulls need to touch
the 2078 handle and a strong upside acceleration will occur well into the 2080’s.
The bears need to push the SPX under 2061 to accelerate the downside. A move
through 2062-2077 is sideways action to begin the week.

Traders quickly turn complacent after Fed Chair Yellen
provided more dovish talk last week to boost the stock market.Long traders
universally expect the bullish December seasonality to kick in with a strong
finish to the end of the year; the boat is fully loaded on the bull side. The
previous CPC put/call ratio chart, however, verifies the complacency in place
which typically identifies a near-term top. The SPX moved through an
astonishing 106-handle range last week from 1972-2078.

Price should back kiss the 20-day MA at 2049 and rising. The 2040 is extremely strong support/resistance, now support, and price blew up through on the Yellen goose. It would be prudent for 2040 to be back
tested as well as the December starting number at 2068. Price will also need to
back test the 200 EMA on the 60-minute chart at 2034. This creates a landing
zone at 2034-2040 for an important bounce or die decision.

Monday will begin with high drama as the bulls are a stone’s
throw away from new all-time historic highs. The 2073, 2075-2076, 2078 and 2079
levels all offer strong resistance. On the down side, the 2065-2068 level is
strong support, then 2061 then 2057.

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